Detailed Single Year Tables
Description of Proposed Provision:
B1.5: Progressive price indexing (60th percentile) of PIA factors beginning with individuals newly eligible for OASDI benefits in 2027: Create a new bend point at the 60th percentile of the AIME distribution of newly retired workers. Maintain current-law benefits for earners at the 60th percentile and below. Reduce the 32 and 15 percent factors above the 60th percentile such that the initial benefit for a worker with AIME equal to the taxable maximum grows by inflation rather than the growth in the SSA average wage index.
Financial Estimates for the OASDI Trust Fund Program
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Expressed as a percentage of current-law taxable payroll |
Trust fund ratio as of January 1 |
Expressed as a percentage of current-law taxable payroll |
|||||||
|
Calendar year |
Cost rate |
Income rate |
Annual balance |
Cost rate |
Income rate |
Annual balance |
|||
| 2020 | 13.92 | 13.00 | -0.92 | 261 | 0.00 | 0.00 | 0.00 | ||
| 2021 | 14.05 | 12.90 | -1.15 | 248 | 0.00 | 0.00 | 0.00 | ||
| 2022 | 14.25 | 12.93 | -1.32 | 233 | 0.00 | 0.00 | 0.00 | ||
| 2023 | 14.43 | 12.94 | -1.49 | 217 | 0.00 | 0.00 | 0.00 | ||
| 2024 | 14.64 | 12.98 | -1.67 | 200 | 0.00 | 0.00 | 0.00 | ||
| 2025 | 14.88 | 13.00 | -1.88 | 183 | 0.00 | 0.00 | 0.00 | ||
| 2026 | 15.11 | 13.12 | -1.99 | 165 | 0.00 | 0.00 | 0.00 | ||
| 2027 | 15.35 | 13.15 | -2.20 | 148 | -0.00 | -0.00 | 0.00 | ||
| 2028 | 15.58 | 13.19 | -2.39 | 130 | -0.00 | -0.00 | 0.00 | ||
| 2029 | 15.83 | 13.23 | -2.60 | 112 | -0.00 | -0.00 | 0.00 | ||
| 2030 | 16.02 | 13.24 | -2.77 | 94 | -0.01 | -0.00 | 0.01 | ||
| 2031 | 16.18 | 13.26 | -2.92 | 76 | -0.01 | -0.00 | 0.01 | ||
| 2032 | 16.32 | 13.27 | -3.05 | 58 | -0.02 | -0.00 | 0.02 | ||
| 2033 | 16.43 | 13.28 | -3.15 | 39 | -0.02 | -0.00 | 0.02 | ||
| 2034 | 16.51 | 13.28 | -3.23 | 21 | -0.04 | -0.00 | 0.03 | ||
| 2035 | 16.58 | 13.29 | -3.29 | 2 | -0.05 | -0.00 | 0.05 | ||
| 2036 | 16.62 | 13.30 | -3.32 | ---- | -0.07 | -0.00 | 0.06 | ||
| 2037 | 16.65 | 13.30 | -3.35 | ---- | -0.09 | -0.00 | 0.08 | ||
| 2038 | 16.67 | 13.30 | -3.37 | ---- | -0.11 | -0.01 | 0.11 | ||
| 2039 | 16.68 | 13.31 | -3.37 | ---- | -0.14 | -0.01 | 0.13 | ||
| 2040 | 16.68 | 13.31 | -3.37 | ---- | -0.17 | -0.01 | 0.16 | ||
| 2041 | 16.66 | 13.31 | -3.35 | ---- | -0.20 | -0.01 | 0.19 | ||
| 2042 | 16.63 | 13.31 | -3.32 | ---- | -0.23 | -0.01 | 0.22 | ||
| 2043 | 16.58 | 13.30 | -3.28 | ---- | -0.27 | -0.01 | 0.25 | ||
| 2044 | 16.53 | 13.30 | -3.23 | ---- | -0.30 | -0.02 | 0.29 | ||
| 2045 | 16.48 | 13.30 | -3.18 | ---- | -0.34 | -0.02 | 0.32 | ||
| 2046 | 16.42 | 13.30 | -3.12 | ---- | -0.38 | -0.02 | 0.36 | ||
| 2047 | 16.37 | 13.30 | -3.07 | ---- | -0.42 | -0.02 | 0.40 | ||
| 2048 | 16.32 | 13.29 | -3.03 | ---- | -0.47 | -0.03 | 0.44 | ||
| 2049 | 16.27 | 13.29 | -2.98 | ---- | -0.51 | -0.03 | 0.48 | ||
| 2050 | 16.23 | 13.29 | -2.94 | ---- | -0.56 | -0.03 | 0.53 | ||
| 2051 | 16.18 | 13.29 | -2.90 | ---- | -0.61 | -0.04 | 0.57 | ||
| 2052 | 16.15 | 13.29 | -2.86 | ---- | -0.66 | -0.04 | 0.62 | ||
| 2053 | 16.12 | 13.29 | -2.84 | ---- | -0.71 | -0.04 | 0.67 | ||
| 2054 | 16.10 | 13.29 | -2.81 | ---- | -0.76 | -0.04 | 0.71 | ||
| 2055 | 16.08 | 13.29 | -2.80 | ---- | -0.81 | -0.05 | 0.76 | ||
| 2056 | 16.07 | 13.29 | -2.78 | ---- | -0.86 | -0.05 | 0.81 | ||
| 2057 | 16.06 | 13.29 | -2.78 | ---- | -0.91 | -0.05 | 0.86 | ||
| 2058 | 16.06 | 13.29 | -2.77 | ---- | -0.96 | -0.06 | 0.91 | ||
| 2059 | 16.07 | 13.29 | -2.78 | ---- | -1.02 | -0.06 | 0.96 | ||
| 2060 | 16.07 | 13.29 | -2.78 | ---- | -1.07 | -0.06 | 1.01 | ||
| 2061 | 16.08 | 13.30 | -2.79 | ---- | -1.12 | -0.07 | 1.06 | ||
| 2062 | 16.09 | 13.30 | -2.80 | ---- | -1.17 | -0.07 | 1.10 | ||
| 2063 | 16.10 | 13.30 | -2.81 | ---- | -1.22 | -0.07 | 1.15 | ||
| 2064 | 16.12 | 13.30 | -2.82 | ---- | -1.28 | -0.08 | 1.20 | ||
| 2065 | 16.13 | 13.30 | -2.83 | ---- | -1.33 | -0.08 | 1.25 | ||
| 2066 | 16.15 | 13.30 | -2.84 | ---- | -1.38 | -0.08 | 1.30 | ||
| 2067 | 16.17 | 13.31 | -2.86 | ---- | -1.43 | -0.09 | 1.34 | ||
| 2068 | 16.19 | 13.31 | -2.88 | ---- | -1.48 | -0.09 | 1.39 | ||
| 2069 | 16.21 | 13.31 | -2.90 | ---- | -1.53 | -0.09 | 1.43 | ||
| 2070 | 16.23 | 13.31 | -2.92 | ---- | -1.57 | -0.09 | 1.48 | ||
| 2071 | 16.25 | 13.31 | -2.94 | ---- | -1.62 | -0.10 | 1.52 | ||
| 2072 | 16.27 | 13.31 | -2.95 | ---- | -1.66 | -0.10 | 1.56 | ||
| 2073 | 16.28 | 13.32 | -2.97 | ---- | -1.70 | -0.10 | 1.60 | ||
| 2074 | 16.29 | 13.32 | -2.98 | ---- | -1.74 | -0.10 | 1.64 | ||
| 2075 | 16.30 | 13.32 | -2.98 | ---- | -1.78 | -0.11 | 1.67 | ||
| 2076 | 16.30 | 13.32 | -2.98 | ---- | -1.81 | -0.11 | 1.70 | ||
| 2077 | 16.30 | 13.32 | -2.98 | ---- | -1.84 | -0.11 | 1.73 | ||
| 2078 | 16.28 | 13.32 | -2.96 | ---- | -1.87 | -0.11 | 1.76 | ||
| 2079 | 16.26 | 13.32 | -2.94 | ---- | -1.89 | -0.11 | 1.78 | ||
| 2080 | 16.23 | 13.32 | -2.91 | ---- | -1.91 | -0.12 | 1.80 | ||
| 2081 | 16.19 | 13.32 | -2.87 | ---- | -1.93 | -0.12 | 1.81 | ||
| 2082 | 16.15 | 13.31 | -2.84 | ---- | -1.94 | -0.12 | 1.83 | ||
| 2083 | 16.11 | 13.31 | -2.80 | ---- | -1.96 | -0.12 | 1.84 | ||
| 2084 | 16.06 | 13.31 | -2.75 | ---- | -1.97 | -0.12 | 1.85 | ||
| 2085 | 16.02 | 13.31 | -2.71 | ---- | -1.98 | -0.12 | 1.86 | ||
| 2086 | 15.97 | 13.30 | -2.67 | ---- | -1.99 | -0.12 | 1.87 | ||
| 2087 | 15.93 | 13.30 | -2.63 | ---- | -1.99 | -0.12 | 1.87 | ||
| 2088 | 15.90 | 13.30 | -2.60 | ---- | -2.00 | -0.12 | 1.88 | ||
| 2089 | 15.87 | 13.30 | -2.57 | ---- | -2.01 | -0.12 | 1.88 | ||
| 2090 | 15.85 | 13.30 | -2.56 | ---- | -2.01 | -0.12 | 1.89 | ||
| 2091 | 15.85 | 13.29 | -2.56 | ---- | -2.02 | -0.12 | 1.89 | ||
| 2092 | 15.86 | 13.30 | -2.56 | ---- | -2.02 | -0.12 | 1.90 | ||
| 2093 | 15.87 | 13.30 | -2.58 | ---- | -2.03 | -0.12 | 1.91 | ||
| 2094 | 15.90 | 13.30 | -2.60 | ---- | -2.04 | -0.12 | 1.92 | ||
| 2095 | 15.93 | 13.30 | -2.63 | ---- | -2.05 | -0.12 | 1.92 | ||
Summarized Estimates
| Proposal | Change from Current Law | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Years | Cost rate |
Income rate |
Actuarial balance |
Year of reserve depletion1 |
Cost rate |
Income rate |
Actuarial balance |
||
| 2020-2094 | 16.19% | 13.80% | -2.40% | 2035 | -0.87% | -0.05% | 0.82% | ||
1 Under current law, the year of Trust Fund reserve depletion is 2035. |
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Based on Intermediate Assumptions of the 2020 Trustees Report.